US President Donald Trump has impose an additional 10% of tariffs on $300 billion worth of goods coming from China. New tariff will be starting next month.
Latest negotiations ended early and US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin have returned from trade talks in Shanghai. A new meeting had been set up for September.
According to CNBC, Wall Street immediately pulled back on the news, with the Dow Jones Industrial Average falling from a 300-point gain to a decline of almost 200 points. The price of crude oil tumbled by 8 percent on concern over the global fallout of Trump's latest salvo. Caterpillar, John Deere, and Apple, all of which have a large exposure to China, saw their stock fall by around 2 percent on the news; and the yield on the 10-year Treasury note fell to its lowest level since 2016.
"More recently, China agreed to buy agricultural product from the U.S. in large quantities, but did not do so…” Trump tweeted.
The International Monetary Fund warned in June that the ongoing tit-for-tat could slash global economic output by 0.5 percent next year, cutting economic output by $455 billion, reported CNBC.
